Slapped with a feather: Richard White misled the board, but keeps the top job

A consequence-free zone is what best describes the governance of WiseTech after its board concluded founder and major shareholder Richard White has engaged in unacceptable conduct, but he emerged penalty free.

There was no plank walking for this human headline/social media Lothario who became the subject of a raft of allegations concerning inappropriate romantic relationships and claims he sought sex in return for personal financial investment.

WiseTech Global’s founder Richard White.Credit: Bloomberg

His punishment (or should we say reward) was his elevation to the position of executive chairman of the $28 billion logistics software company – the biggest tech stock on the ASX.

The legal firm investigating a range of allegations against White for the board found he made inaccurate, misleading and incomplete disclosures about his relationship with a member of staff and also with a WiseTech supplier.

Normally, the terms of his departure would be expected, given the board deemed his conduct in relation to certain matters “not acceptable” and “serious in nature”.

Despite having branded his behaviour as such, WiseTech’s directors decided to accept it.

White has shown himself to exist in the rarefied air of an untouchable.

The lack of punishment would be unthinkable in most large Australian listed companies, where lesser infringements have resulted in executive departures.

The board has also decided against releasing the full report by investigators, which, according to the Australian Financial Review, White viewed as defamatory, although others have suggested he has not yet seen it.

Thus White, branded as the “LinkedIn lecher”, has shown himself to exist in the rarefied air of an untouchable.

It helps that he owns 37 per cent of the company, which in a practical sense constitutes a controlling position.

White redefines the notion of key man risk. His conduct brings with it risk to the company, given it attracts “legitimate governance concerns”, according to the board. But his departure is regarded by shareholders to carry risk to the company’s future strategy and earnings growth.

Last month’s mass exodus of independent directors Richard Dammery, Fiona Pak-Poy, Michael Malone and Lisa Brock after “differing views” on White’s role suggest they saw corporate governance as a larger risk.

The current board, however, said it was conscious of the exceptional knowledge and value that White as co-founder “brings to strategy, product, customers and shareholders, which is reflected in the responses to the shareholder engagement survey”.

The board has deemed an appropriate response to the scandal is to review the company’s code of conduct to enhance disclosure and management of close personal relationships that are connected with the company.

WiseTech says it has strong governance arrangements in place, including platforms for whistleblowers.

However, it is unlikely that governance experts would agree that the actions of the board meet the expectations for a large listed company.

When the allegations against White were first aired in the media in October, White stepped down from the board, which announced he would become a consultant.

This masthead reported he paid a $2 million settlement in a dispute with a former lover, that he had bought a $7 million Melbourne waterfront property for employee and former long-time partner Christine Kontos, and in 2019 was accused by then-director Christine Holman of bullying and intimidation.

Meanwhile, White’s response to the review’s findings on Wednesday wasn’t dripping with repentance.

He indicated that while the matters which were the subject of the investigation “were personal in nature”, “with the benefit of hindsight he would have more fulsomely disclosed them to the board” and he was supportive of a more stringent company code of conduct, according to the company’s ASX statement.

For now, at least, the response from investors has been positive, with the WiseTech stock trading almost flat, in tandem with the broader market.

But who knows? This saga could have further to play out.

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